Bitcoin price started a big drop below $44,000 after rumors of spot ETF rejection. BTC fell more than 10%, but the bulls are still protecting the USD 40,000 support.
- Bitcoin fell heavily and even peaked below the $40,000 level.
- The price is trading below $43,500 and the 100 hourly Simple Moving Average.
- There was a break below a key bullish trendline with support near $43,200 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could start another rise if a close above the $43,500 resistance zone.
Bitcoin Price Plunges More Than 10%
Bitcoin price struggled to pace a move above the USD 46,000 resistance level. BTC found strong selling interest and then rumors of the rejection of spot ETFs entered the market.
It led to bearish moves and the price fell below the USD 44,000 level. There was a break below a key bullish trendline with support near $43,200 on the hourly chart of the BTC/USD pair. The pair fell more than 10% and even peaked below the $40,000 support.
A low was formed around $39,500 and the price started a recovery wave. There was a move above the USD 41,500 and USD 42,000 levels. There was a wave above the 50% Fib retracement level of the downward move from the $45,913 swing high to the $39,501 low.
Bitcoin is trading below $43,500 and the 100 hourly Simple Moving Average. On the upside, immediate resistance is around the $43,200 level. The first major resistance is $43,500 or the 61.8% Fib retracement level of the downward move from the $45,913 swing high to the $39,501 low.
Source: BTCUSD on TradingView.com
A close above the USD 43,500 level could send the price rising further. The next major resistance is at $44,400. Any further gains above the $44,400 level could open the doors for a move towards the $45,000 level.
New BTC Drop?
If Bitcoin fails to rise above the USD 43,500 resistance zone, it could start a new decline. The immediate downside support is near the USD 42,000 level.
The next major support is near $41,300. If a move occurs below $41,300, the price could gain bearish momentum. In the mentioned case, the price could fall towards the USD 40,500 support in the short term.
Technical indicators:
Hourly MACD – The MACD is now losing pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
Major support levels – USD 42,000, followed by USD 41,300.
Major resistance levels – $43,200, $43,500 and $44,000.
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